Question About Quarterly Tax Payments

[Neekie]

My accountant always sets me up with quarterly tax payments and every year I have always paid them on time. But this year for some strange reason I forgot all about them. I am going to pay them now and get up to date, but what will the IRS do to me for getting them in so late? Am I in big trouble? I think it will help though that my husband pulls extra money for taxes out of his checks every week, I hope anyway.

[daycare]

My accountant always sets me up with quarterly tax payments and every year I have always paid them on time. But this year for some strange reason I forgot all about them. I am going to pay them now and get up to date, but what will the IRS do to me for getting them in so late? Am I in big trouble? I think it will help though that my husband pulls extra money for taxes out of his checks every week, I hope anyway.

I have moved this to daycare and taxes.... Hopefully tom can help you

[EntropyControlSpecialist]

I think I read that you won't be penalized IF you owe less than $1,000 after deductions and everything are taken into account.

[Neekie]

I have moved this to daycare and taxes.... Hopefully tom can help you

Oh, thank you! I didn't realize there was a special form for that. I guess I need to to look a little better. I appreciate your help.

[Neekie]

I think I read that you won't be penalized IF you owe less than $1,000 after deductions and everything are taken into account.

I am hoping that is the way it is and that I am under that amount. It is going to be close.

[grandmom]

In the midst of separation/divorce I didn't even know I was supposed to be paying quarterly, then didn't have the money anyway. Long-story-short: I paid what I could. There was a small penalty. By the time I got that year's taxes paid, I was waaayyyy behind in the current year, it took me more than 2 years to get caught up. I just kept making payments. Don't stress too much.

[TomCopeland]

Estimated taxes

My accountant always sets me up with quarterly tax payments and every year I have always paid them on time. But this year for some strange reason I forgot all about them. I am going to pay them now and get up to date, but what will the IRS do to me for getting them in so late? Am I in big trouble? I think it will help though that my husband pulls extra money for taxes out of his checks every week, I hope anyway.

You will be assessed a penalty if you didn't pay in at least 90% of the taxes your family owed for each quarter of the year. There are some ways to avoid the penalties. One way is to pay in enough taxes this year to equal or exceed the total amount of taxes you owed for last year.

Pay in as soon as you can. The fourth quarter deadline is January 15, 2013. Then file your taxes. Don't try to figure out if you do owe a penalty. Let the IRS figure this out. They may not determine there is a penalty.

[tenderhearts]

I'm a little worried now after reading this, I have done daycare for 13 years and have NEVER paid anything quarterly. I have an accountant that does my taxes but she's never said anything and the IRS has never said or done anything to me, however we always get a refund is that the difference?

[Neekie]

I think you would only have to worry about quarterlies if you have to pay in. I think you should be fine if you get a refund. But Tom would be the expert here.

[Neekie]

Thanks you Tom for answering my question. I am paid up on my taxes now and so I will just have to see what happens at tax time and hope for the best..

[TomCopeland]

estimated taxes

I'm a little worried now after reading this, I have done daycare for 13 years and have NEVER paid anything quarterly. I have an accountant that does my taxes but she's never said anything and the IRS has never said or done anything to me, however we always get a refund is that the difference?

If you get a refund that means you've paid in more than you owe and therefore you aren't required to pay quarterly.

[WImom]

So I also didn't realize I had to pay quarterly taxes, first year I've had to pay. I paid $2400 last year in taxes but didn't pay any quarterly this year. I can probably pay about $1000 before Jan. 13th, 2013. Is it in my best interest to do this or will I get a penalty either way?

We did some remodeling of my daycare space (100% business) this year so I'm hoping to break even or have very little owed.

[TomCopeland]

estimated taxes

So I also didn't realize I had to pay quarterly taxes, first year I've had to pay. I paid $2400 last year in taxes but didn't pay any quarterly this year. I can probably pay about $1000 before Jan. 13th, 2013. Is it in my best interest to do this or will I get a penalty either way?

We did some remodeling of my daycare space (100% business) this year so I'm hoping to break even or have very little owed.

If you pay in some money with the 4th quarter estimated tax payment that is due January 15, 2013 you will reduce any penalty you might owe for the last quarter. If you are married, it's better to have your husband withhold more money from his paycheck between now and the end of the year because his payments can reduce any penalties for the entire year.

[WImom]

Thanks Tom. I am married so should I pay and have my husaband withhold more just have him withhold more?

[TomCopeland]

estimated taxes

Thanks Tom. I am married so should I pay and have my husaband withhold more just have him withhold more?

Just have your husband withhold more.